stock insurance company

Dictionary of Business Terms for: stock insurance company
stock insurance company

group owned by stockholders to whom company earnings are paid in the form of shareholder dividends. Under state laws, however, the interest of policyholders takes precedence over stockholder interests.

Dictionary of Finance and Investment Terms for: stock insurance company
stock insurance company

insurance company that is owned by stockholders, as distinguished from a mutual company that is owned by policyholders. Even in a stock company, however, policyholders interests are ahead of shareholder’s dividends.

Dictionary of Insurance Terms for: stock insurance company
stock insurance company

business owned by stockholders, as contrasted to a mutual insurance company, which is owned by its policyholders. Many major life insurers are mutual companies whereas some leading property/casualty and multiline insurers are stock insurance companies.

Copyright (c) by Barron's Educational Series. Reprinted by arrangement with the publisher of this site.